Argentina is going through an economic turmoil that seeks immediate recovery to save it from the hands of further damage. In order to bring the situation under control, the IMF or the International Monetary Fund has agreed to sanction a loan of up to $50 billion under a three-year agreement.
Though Argentina has been facing a tremendous economic struggle for a long period of time, it had sought for help after the value of its currency had hit an all-time low.
Argentina has also committed to taking serious measures to get a firm control over the public spending and inflation of double-digit. The authorities of the country have also confirmed that it will not be utilizing the integrated sum of the loan in a go but will take a portion from it and keep the loan as a precautionary arrangement.
On the contrary, many people are considering this as a negative step taken by the President of Argentina, Mauricio Macri. The concern was raised as the people of the nation consider IMF to be the prime contributor to the economic collapse in 2001 when it had decided to suspend the ongoing financial support.
However, in response to the protests raised against the decision, the President had confirmed that a fresh loan will allow the economy to stabilize and will enhance the growth. This is speculated not only to revive the present economic condition but also to strengthen the country to encounter the latest global scenario.
As per the analysis of the scenario, Christine Lagarde, the Managing Director of IMF and the President of Argentina are on the same side of the agreement as both want the inflation to come down through depreciating the public spending, which had reached the highest point among the G20 economies. Therefore, this loan will allow the country to accelerate the reformation of the economic condition.